ABSTRACT

North Carolina cotton acreage has increased significantly in the last five years, while corn and wheat acres have been declining. Much of the new cotton acreage is being grown on a continuous basis. Three model cotton farms were developed to compare net income of a continuous cotton system with four different crop rotations. Actual county yields and state prices were used in the model farms to simulate the price and yield risks of various rotations. The model farm data was developed after surveying cotton farms in three counties in North Carolina. Jones County crop rotations resulted in the least variation in net income between the four rotations. With a five-percent increase in crop yields, three of the crop rotations were more profitable than continuous cotton. Due to relatively high cotton yields in Hyde County, continuous cotton was considerably more profitable than the other rotations, with only the soybean rotation resulting in a positive return over the past six years. The wheat-soybean rotations had net farm incomes comparable to continuous cotton, with a five-percent increase in crop yields. In Northampton County, continuous cotton was twice as profitable as the closest rotation of wheat/soybean double crop. With a five-percent increase in crop yields, the wheat/soybean double crop rotation was almost as profitable as continuous cotton.